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The Competition Commission agrees with MasterCard to reduce debit card fees – News

The Competition Commission agrees with MasterCard to reduce debit card fees – News

  • When a customer pays in-store using a debit card, stores must pay a fee to the card provider.
  • The Competition Commission has now reached an agreement with card provider Mastercard.
  • The so-called interchange fees have been reduced. Until now, small companies in particular have had to give up more, says the Competition Commission when asked by SRF.

Specifically, they agreed with Mastercard on a 0.12% fee for so-called local face-to-face transactions, such as purchases made on-site at a store or restaurant. This is with an upper limit of 30 cents for a transaction amount of 300 francs, which, according to Weko, corresponds to an average rate of 0.1 percent. The agreement is valid until at least 2033.


Process for customers – potentially expensive for stores: contactless payment using a terminal.


However, the corresponding European regulation stipulates a rate of 0.2 percent. Due to the previous measures, a rate of 0.31 percent will apply to local online payments and payments with mobile devices (so-called e-commerce and mobile commerce) until October 31, 2025. In other words: anyone who uses their card via Apple or Samsung Pay and their smartphone, for example, incurs Higher costs for retailers compared to customers who pay directly with a plastic card.

Prior to the investigation, competition authorities agreed with MasterCard to reduce this rate to 0.28 percent effective November 1, 2025.

There is no agreement with Visa

She added that while a solution has now been found with MasterCard, a solution with rival Visa is still pending. The corresponding investigation into “interchange fees” in Visa's direct business continues and will not be affected by the agreement with Mastercard, according to Comco.

The Swiss Retail Trade Association, the Swiss retail trade association, is happy with the agreement reached. It results in a significant reduction in fees at the actual point of sale. But the statement says: “There is still a lot of room for improvement.”